BILL NUMBER: SB 144	CHAPTERED  09/07/99

	CHAPTER   342
	FILED WITH SECRETARY OF STATE   SEPTEMBER 7, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 7, 1999
	PASSED THE SENATE   AUGUST 24, 1999
	PASSED THE ASSEMBLY   AUGUST 19, 1999
	AMENDED IN ASSEMBLY   JULY 13, 1999
	AMENDED IN ASSEMBLY   JUNE 28, 1999
	AMENDED IN ASSEMBLY   JUNE 21, 1999
	AMENDED IN SENATE   MAY 25, 1999
	AMENDED IN SENATE   MAY 6, 1999
	AMENDED IN SENATE   APRIL 21, 1999

INTRODUCED BY   Senator Schiff and Assembly Member Hertzberg

                        JANUARY 5, 1999

   An act to amend Sections 6068, 6070, 6085, and 6141.1 of, to add
Sections 6008.6, 6031.5, and 6140.05 to, to add and repeal Section
6140 of, and to repeal and add Section 6145 of, the Business and
Professions Code, relating to the State Bar.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 144, Schiff.  State Bar:  membership fees.
   Existing law establishes the State Bar.  The Board of Governors of
the State Bar has broad responsibilities for the State Bar's
operation and function, including, among other things, administration
of the State Bar, admission to the practice of law, and disciplinary
authority over its members.
   This bill would revise various provisions relating to the State
Bar.
   (1) Existing rules and regulations of the State Bar provide for
the creation of, and specify the functions and activities of, the
Conference of Delegates, which represents locally based general bar
associations.  Existing rules and regulations of the State Bar also
provide for advisory organizations of the State Bar known as
sections.
   This bill would provide that the Conference of Delegates of the
State Bar and State Bar sections shall not be funded with mandatory
fees after January 1, 2000, but would authorize the State Bar to
provide the Conference of Delegates and State Bar sections with
administrative and support services, subject to full reimbursement,
as specified.
   (2) Existing law imposes various duties on attorneys.  Among other
things, it requires attorneys to cooperate and participate in any
disciplinary investigation or other regulatory or disciplinary
proceeding pending against the attorney.
   This bill would provide that this requirement shall not be
construed to require an attorney to cooperate with a request that
requires the attorney to waive any constitutional or statutory
privilege or to comply with a request for information or other
matters within an unreasonable period of time in light of the time
constraints of the attorney's practice, as specified.
   Existing law provides that a person complained against in a
disciplinary action of the State Bar shall be given a reasonable
notice and have a reasonable opportunity to exercise various rights,
including the right to defend, to receive exculpatory evidence, to be
represented by counsel, and to examine and cross-examine witnesses.

   This bill would also provide that the notice and rights shall be
fair and adequate, as well as reasonable, and would also specify that
the person has a right to exercise any right guaranteed by the
California or United States Constitution, including the right against
self-incrimination.
   (3) Existing law requires the State Bar to request the California
Supreme Court to adopt a rule authorizing a mandatory continuing
legal education program.  Existing law establishes minimum hours of
participation, and exempts various persons from the requirement.
   This bill would reduce the required hours, would eliminate the
exemption for retired judges, would encourage the use of low-cost
programs, would set forth findings, and would make related changes.
   (4) Existing law, until January 1, 1998, required the Board of
Governors of the State Bar to establish annual membership fees for
active members based on the amount of time the member has been
practicing law, as specified.  Existing law also provides for
additional fees.
   This bill would provide for an annual fee not exceeding $318.
This provision would be repealed on January 1, 2001.
   The bill would also require the invoice for the annual fee to
provide each member the option of deducting $5 from the annual fee if
the member elects not to support lobbying and related activities,
and would prohibit the Board of Governors of the State Bar from
expending a sum exceeding the number of members paying the $5 fee,
multiplied by $5.
   The bill would require the Board of Governors of the State Bar to
adopt a rule to permit members whose income from the practice of law
is less than a specified amount to presumptively qualify for a waiver
of a portion of the annual membership fees based on hardship.
   Existing law requires the Board of Governors of the State Bar to
prepare an annual financial statement for the State Bar, which is
required to be certified under oath by the President and the
Treasurer of the State Bar to the Chief Justice of the Supreme Court.

   This bill would require the Board of Governors of the State Bar to
contract with a nationally recognized independent public accounting
firm to conduct an audit of the State Bar's financial statement for
each fiscal year beginning after December 31, 1998.  It would require
the financial statement to be certified under oath by the Treasurer
of the State Bar, and a copy of the audit and the financial statement
to be submitted within 120 days of the close of the fiscal year to
the Board of Governors of the State Bar, the Chief Justice of the
Supreme Court, and the Assembly and Senate Committees on Judiciary.
It would also require the Board of Governors of the State Bar to
contract with the Bureau of State Audits to conduct a performance
audit of the State Bar's operations from July 1, 2000, through
December 31, 2000, inclusive, and would require a copy of the
performance audit to be submitted by May 1, 2001, to the Board of
Governors of the State Bar, the Chief Justice of the Supreme Court,
and the Assembly and Senate Committees on Judiciary.  It would
require that the Board of Governors contract with the Bureau of State
Audits every 2 years thereafter to conduct a performance audit of
the State Bar's operations for the respective fiscal year, commencing
with January 1, 2002, to December 31, 2002, inclusive, and would
require a copy of the performance audit to be submitted within 120
days of the close of the fiscal year for which the audit was
performed to the Board of Governors of the State Bar, the Chief
Justice of the Supreme Court, and the Assembly and Senate Committees
on Judiciary.  It would authorize the Bureau of State Audits to
contract with a 3rd party to conduct these performance audits.
   The bill would prohibit the State Bar from awarding a contract for
goods, services, or both, for an aggregate amount in excess of
$50,000, except pursuant to specified provisions of the Public
Contract Code.  The bill would make related changes.  It would also
provide that its provisions shall become operative only if SB 143 of
the 1999-2000 Regular Session is enacted.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 6008.6 is added to the Business and Professions
Code, to read:
   6008.6.  The State Bar shall award no contract for goods,
services, or both, for an aggregate amount in excess of fifty
thousand dollars ($50,000), except pursuant to the standards
established in Article 4 (commencing with Section 10335) of Chapter 2
of Part 2 of Division 2 of the Public Contract Code.  The State Bar
shall establish a request for proposal procedure by rule, pursuant to
the general standards established in Article 4 (commencing with
Section 10335) of Chapter 2 of Part 2 of Division 2 of the Public
Contract Code.
  SEC. 1.5.  Section 6031.5 is added to the Business and Professions
Code, to read:
   6031.5.  (a) The Conference of Delegates, as established under and
pursuant to Article 6 of the Rules and Regulations of the State Bar,
shall not be funded after January 1, 2000, with mandatory fees
collected pursuant to subdivision (a) of Section 6140.
   The State Bar may provide the Conference of Delegates with
administrative and support services, provided the State Bar shall be
reimbursed for the full cost of those services out of funds collected
pursuant to subdivision (c), funds raised by or through the
activities of the Conference of Delegates, or other funds collected
from voluntary sources.  The financial audit specified in Section
6145 shall confirm that the amount assessed by the State Bar for
providing the services reimburses the costs of providing them, and
shall verify that mandatory dues are not used to fund the Conference
of Delegates.
   (b) State Bar sections, as established under and pursuant to
Article 13 of the Rules and Regulations of the State Bar, and their
activities shall not be funded after January 1, 2000, with mandatory
fees collected pursuant to subdivision (a) of Section 6140.
   The State Bar may provide an individual section, or two or more
sections collectively, with administrative and support services,
provided the State Bar shall be reimbursed for the full cost of those
services out of funds collected pursuant to subdivision (c), funds
raised by or through the activities of the sections, or other funds
collected from voluntary sources.  The financial audit specified in
Section 6145 shall confirm that the amount assessed by the State Bar
for providing the services reimburses the costs of providing them,
and shall verify that mandatory dues are not used to fund the
sections.
   (c) Notwithstanding the other provisions of this section, the
State Bar is expressly authorized to collect voluntary fees to fund
the Conference of Delegates or the State Bar sections on behalf of
those organizations in conjunction with the State Bar's collection of
its annual membership dues.  Funds collected pursuant to this
subdivision, and other funds raised by or through the activities of
the Conference of Delegates or sections, or collected from voluntary
sources, for their support or operation, shall not be subject to the
expenditure limitations of subdivision (b) of Section 6140.05.
  SEC. 2.  Section 6068 of the Business and Professions Code is
amended to read:
   6068.  It is the duty of an attorney to do all of the following:
   (a) To support the Constitution and laws of the United States and
of this state.
   (b) To maintain the respect due to the courts of justice and
judicial officers.
   (c) To counsel or maintain those actions, proceedings, or defenses
only as appear to him or her legal or just, except the defense of a
person charged with a public offense.
   (d) To employ, for the purpose of maintaining the causes confided
to him or her those means only as are consistent with truth, and
never to seek to mislead the judge or any judicial officer by an
artifice or false statement of fact or law.
   (e) To maintain inviolate the confidence, and at every peril to
himself or herself to preserve the secrets, of his or her client.
   (f) To abstain from all offensive personality, and to advance no
fact prejudicial to the honor or reputation of a party or witness,
unless required by the justice of the cause with which he or she is
charged.
   (g) Not to encourage either the commencement or the continuance of
an action or proceeding from any corrupt motive of passion or
interest.
   (h) Never to reject, for any consideration personal to himself or
herself, the cause of the defenseless or the oppressed.
   (i) To cooperate and participate in any disciplinary investigation
or other regulatory or disciplinary proceeding pending against the
attorney.  However, this subdivision shall not be construed to
deprive an attorney of any privilege guaranteed by the Fifth
Amendment to the Constitution of the United States or any other
constitutional or statutory privileges.  This subdivision shall not
be construed to require an attorney to cooperate with a request that
requires the attorney to waive any constitutional or statutory
privilege or to comply with a request for information or other
matters within an unreasonable period of time in light of the time
constraints of the attorney's practice.  Any exercise by an attorney
of any constitutional or statutory privilege shall not be used
against the attorney in a regulatory or disciplinary proceeding
against him or her.
   (j) To comply with the requirements of Section 6002.1.
   (k) To comply with all conditions attached to any disciplinary
probation, including a probation imposed with the concurrence of the
attorney.
   (l) To keep all agreements made in lieu of disciplinary
prosecution with the agency charged with attorney discipline.
   (m) To respond promptly to reasonable status inquiries of clients
and to keep clients reasonably informed of significant developments
in matters with regard to which the attorney has agreed to provide
legal services.
   (n) To provide copies to the client of certain documents under
time limits and as prescribed in a rule of professional conduct which
the board shall adopt.
   (o) To report to the agency charged with attorney discipline, in
writing, within 30 days of the time the attorney has knowledge of any
of the following:
   (1) The filing of three or more lawsuits in a 12-month period
against the attorney for malpractice or other wrongful conduct
committed in a professional capacity.
   (2) The entry of judgment against the attorney in any civil action
for fraud, misrepresentation, breach of fiduciary duty, or gross
negligence committed in a professional capacity.
   (3) The imposition of any judicial sanctions against the attorney,
except for sanctions for failure to make discovery or monetary
sanctions of less than one thousand dollars ($1,000).
   (4) The bringing of an indictment or information charging a felony
against the attorney.
   (5) The conviction of the attorney, including any verdict of
guilty, or plea of guilty or no contest, of any felony, or any
misdemeanor committed in the course of the practice of law, or in any
manner such that a client of the attorney was the victim, or a
necessary element of which, as determined by the statutory or common
law definition of the misdemeanor, involves improper conduct of an
attorney, including dishonesty or other moral turpitude, or an
attempt or a conspiracy or solicitation of another to commit a felony
or any misdemeanor of that type.
   (6) The imposition of discipline against the attorney by any
professional or occupational disciplinary agency or licensing board,
whether in California or elsewhere.
   (7) Reversal of judgment in a proceeding based in whole or in part
upon misconduct, grossly incompetent representation, or willful
misrepresentation by an attorney.
   (8) As used in this subdivision, "against the attorney" includes
claims and proceedings against any firm of attorneys for the practice
of law in which the attorney was a partner at the time of the
conduct complained of and any law corporation in which the attorney
was a shareholder at the time of the conduct complained of unless the
matter has to the attorney's knowledge already been reported by the
law firm or corporation.
   (9) The State Bar may develop a prescribed form for the making of
reports required by this section, usage of which it may require by
rule or regulation.
   (10) This subdivision is only intended to provide that the failure
to report as required herein may serve as a basis of discipline.
  SEC. 3.  Section 6070 of the Business and Professions Code is
amended to read:
   6070.  (a) The State Bar shall request the California Supreme
Court to adopt a rule of court authorizing the State Bar to establish
and administer a mandatory continuing legal education program.  The
rule that the State Bar requests the Supreme Court to adopt shall
require that, within designated 36-month periods, all active members
of the State Bar shall complete at least 25 hours of legal education
activities approved by the State Bar or offered by a State Bar
approved provider, with four of those hours in legal ethics.  A
member of the State Bar who fails to satisfy the mandatory continuing
legal education requirements of the program authorized by the
Supreme Court rule shall be enrolled as an inactive member pursuant
to rules adopted by the Board of Governors of the State Bar.
   (b) For purposes of this section, statewide associations of public
agencies and incorporated, nonprofit professional associations of
attorneys, shall be certified as State Bar approved providers upon
completion of an appropriate application process to be established by
the State Bar.  The certification may be revoked only by majority
vote of the board, after notice and hearing, and for good cause
shown.  Programs provided by the California District Attorneys
Association or the California Public Defenders Association, or both,
including, but not limited to, programs provided pursuant to Title
1.5 (commencing with Section 11500) of Part 4 of the Penal Code, are
deemed to be legal education activities approved by the State Bar or
offered by a State Bar approved provider.
   (c) Notwithstanding the provisions of subdivision (a), officers
and elected officials of the State of California, and full-time
professors at law schools accredited by the State Bar of California,
the American Bar Association, or both, shall be exempt from the
provisions of this section.  Full-time employees of the State of
California, acting within the scope of their employment, shall be
exempt from the provisions of this section.  Nothing in this section
shall prohibit the State of California, or any political subdivision
thereof, from establishing or maintaining its own continuing
education requirements for its employees.
   (d) The State Bar shall provide and encourage the development of
low-cost programs and materials by which members may satisfy their
continuing education requirements.  Special emphasis shall be placed
upon the use of internet capabilities and computer technology in the
development and provision of no-cost and low-cost programs and
materials.  Towards this purpose, the State Bar shall ensure that by
July 1, 2000, any member possessing or having access to the internet
or specified generally available computer technology shall be capable
of satisfying the full self-study portion of his or her MCLE
requirement at a cost of fifteen dollars ($15) per hour or less.
  SEC. 4.  Section 6085 of the Business and Professions Code is
amended to read:
   6085.  Any person complained against shall be given fair,
adequate, and reasonable notice and have a fair, adequate, and
reasonable opportunity and right:
   (a) To defend against the charge by the introduction of evidence.

   (b) To receive any and all exculpatory evidence from the State Bar
after the initiation of a disciplinary proceeding in State Bar
Court, and thereafter when this evidence is discovered and available.
  This subdivision shall not require the disclosure of mitigating
evidence.
   (c) To be represented by counsel.
   (d) To examine and cross-examine witnesses.
   (e) To exercise any right guaranteed by the California
Constitution or the United States Constitution, including the right
against self-incrimination.
   He or she shall also have the right to the issuance of subpoenas
for attendance of witnesses to appear and testify or produce books
and papers, as provided in this chapter.
  SEC. 5.  Section 6140 is added to the Business and Professions
Code, to read:
   6140.  (a) The board shall fix the annual membership fee for
active members at a sum not exceeding three hundred eighteen dollars
($318).
   (b) The annual membership fee for active members is payable on or
before the first day of February of each year.  If the board finds it
appropriate and feasible, it may provide by rule for payment of fees
on an installment basis with interest, by credit card, or other
means, and may charge members choosing any alternative method of
payment an additional fee to defray costs incurred by that election.

   (c) This section shall remain in effect only until January 1,
2001, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2001, deletes or extends
that date.
  SEC. 6.  Section 6140.05 is added to the Business and Professions
Code, to read:
   6140.05.  (a) The invoice provided to members for payment of the
annual membership fee shall provide each member the option of
deducting five dollars ($5) from the annual fee if the member elects
not to support lobbying and related activities by the State Bar
outside of the parameters established by the United States Supreme
Court in Keller v. State Bar of California (1990) 496 U.S. 1.
   (b) For the support or defense of lobbying and related activities
conducted by the State Bar on or after January 1, 2000, outside of
the parameters of Keller v. State Bar of California, and in support
or defense of any litigation arising therefrom, the Board of
Governors of the State Bar shall not expend a sum exceeding the
following:  the product of the number of members paying their annual
dues who did not elect the optional deduction multiplied by five
dollars ($5).
   Moneys collected pursuant to this section shall not be deemed
voluntary fees or funds for the purpose of subdivision (c) of Section
6031.5.
   (c) As used in this section, "lobbying and related activities by
the State Bar" includes the consideration of measures by the Board of
Governors of the State Bar that are deemed outside the parameters
established in Keller v. State Bar, the purview determination,
lobbying and the preparation for lobbying of the measures, and any
litigation in support or defense of that lobbying.  The determination
of these costs shall include, but not be limited to, overhead and
administrative costs.
  SEC. 7.  Section 6141.1 of the Business and Professions Code is
amended to read:
   6141.1.  (a) The payment by any member of the annual membership
fee, any portion thereof, or any penalty thereon, may be waived by
the board as it may provide by rule.  The board may require
submission of recent federal and state income tax returns and other
proof of financial condition as to those members seeking waiver of
all or a portion of their fee or penalties on the ground of financial
hardship.
   (b) The board shall adopt rules providing that:
   (1) An active member who can demonstrate annual income from the
practice of law of less than forty thousand dollars ($40,000) shall
presumptively qualify for a waiver of 25 percent of the annual
membership fee.
   (2) An active member who can demonstrate annual income from the
practice of law of less than twenty-five thousand dollars ($25,000)
shall presumptively qualify for a waiver of 50 percent of the annual
membership fee.
  SEC. 8.  Section 6145 of the Business and Professions Code is
repealed.
  SEC. 9.  Section 6145 is added to the Business and Professions
Code, to read:
   6145.  (a) The board shall contract with a nationally recognized
independent public accounting firm for an audit of its financial
statement for each fiscal year beginning after December 31, 1998.
The financial statement shall be promptly certified under oath by the
treasurer of the State Bar, and a copy of the audit and financial
statement shall be submitted within 120 days of the close of the
fiscal year to the board, the Chief Justice of the Supreme Court, and
to the Assembly and Senate Committees on Judiciary.
   The audit shall examine the receipts and expenditures of the State
Bar, the Conference of Delegates, and the State Bar sections, to
assure that the receipts of the Conference of Delegates and the
sections are being applied, and their expenditures are being made, in
compliance with subdivisions (a) and (b) of Section 6031.5, and that
the receipts of the Conference of Delegates and the receipts of the
sections are applied only to the work of the Conference of Delegates
and the sections, respectively.
   (b) The board shall contract with the Bureau of State Audits to
conduct a performance audit of the State Bar's operations from July
1, 2000, to December 31, 2000, inclusive.  A copy of the performance
audit shall be submitted by May 1, 2001 to the board, to the Chief
Justice of the Supreme Court, and to the Assembly and Senate
Committees on Judiciary.
   Every two years thereafter, the board shall contract with the
Bureau of State Audits to conduct a performance audit of the State
Bar's operations for the respective fiscal year, commencing with
January 1, 2002, through December 31, 2002, inclusive.  A copy of the
performance audit shall be submitted within 120 days of the close of
the fiscal year for which the audit was performed to the board, to
the Chief Justice of the Supreme Court, and to the Assembly and
Senate Committees on Judiciary.
   For the purposes of this subdivision, the Bureau of State Audits
may contract with a third party to conduct the performance audit.
This subdivision is not intended to reduce the number of audits the
Bureau of State Audits may otherwise be able to conduct.
  SEC. 10.  The Legislature finds and declares that it is in the
public interest to continue the mandatory continuing legal education
requirements for attorneys licensed to practice law.  The Legislature
further finds and declares that officers and elected officials of
the State of California, and their full-time employees, undergo
ongoing continuing legal education in their review of the
implementation of current statutes and regulations, including any
court interpretation of a statute or regulation, and in their
consideration and analysis of proposed changes in those statutes and
regulations, thereby warranting their exemption from the requirements
of Section 6070 of the Business and Professions Code.  The
Legislature also finds and declares that full-time law professors at
accredited law schools also undergo ongoing continuing legal
education in their review of the statutes and regulations of this
state, including any court interpretation of a statute or regulation,
thereby warranting their exemption from the requirements of Section
6070 of the Business and Professions Code.
  SEC. 11.  The provisions of this act are severable.  If any
provision of this act or its application is held invalid, that
invalidity shall not affect other provisions or applications that can
be given effect without the invalid provision or application.
  SEC. 12.  This act shall become operative only if Senate Bill 143
of the 1999-2000 Regular Session is enacted and becomes effective on
or before January 1, 2000.
